Mobile and internet banking fraud in South Africa is on the rise, according to a new report, with the growth of innovative banking options providing opportunities for cybercriminals.
The 2012 annual report for banking services compiled by the Ombudsman for Banking Services (OBS) noted an increase of eight per cent and three per cent in mobile and internet banking fraud cases respectively.
John Myburgh, chairman of the board of the OBS, said banks were encouraged by the growing mobile customer base to launch innovative payment options to reach the estimated 13 million South Africans currently unbanked. However, he said, this put citizens more at risk of cybercrime.
The OBS warned banks they must not compromise on security in light of this increased risk.
“There has never been a greater need for security and control in the banking environment, specifically on the digital highway,” Myburgh said. “This is not only because of the rise in internet banking fraud, but because the banks have a duty to commit to the Code of Banking Practice, which calls for safe, secure and reliable banking and payment systems.”
He said banks would soon have to contend with the soon to be enacted Protection of Personal Information Act, which will oblige banks to operate in a transparent manner when it comes to the disclosure of personal information.
“Security means more than identifying the risks and sanctioning the fraudsters. Solutions must be tailored to specific sectors and operations, and they must keep pace with the growing sophistication of attacks on banking systems,” he said.
